B2B E-commerce Startup “Sinbad” Reportedly Raising Series A Fund Led by Centauri Fund

Startups E-commerce B2B Sinbad reportedly raises series A funding led by Centauri Fund, a joint venture fund between Telkom and KB Financial Group.

According to sources DailySocial.id, the round worth $5,5 million (more than 85,9 billion Rupiah) was also followed by other investors, such as Genesia Ventures, Central Capital Ventures, and MDI Ventures. The last two names are longtime investors of Sinbad who participated in the previous round. MDI Ventures led the early stage round for Sinbad in early 2020.

The startup that was started in 2018 by Emilio Wibisono and Jabert Hachchouch is playing in the realm E-commerce B2B which has a mission to simplify supply chains in Indonesia, making it easier for traders and suppliers in the procurement process. It is claimed that product orders through Sinbad will be directly connected to the main distributor with the lowest rates on the market.

The majority of the product categories sold by Sinbad are FMCG, ranging from food, drinks, milk, body care, baby equipment and pets. All of these items are supplied by the main principal brands.

The company claims to have 5K+ total SKUs, coming from 80 brand. Sinbad is said to have reached more than 150 cities for the distribution of its store network and suppliers. Not much other information can be extracted regarding Sinbad's achievements since its founding until now.

Not only is it easy to shop at competitive prices directly from suppliers, Sinbad also offers easy shopping with a pay later feature (paylater). In fact, the solution offered by Sinbad is not new in Indonesia. The company competes directly with other players, such as WarehouseAda, Credibook (CrediMart), Ula, Warung Pintar, GoToko, Dagangan, and others, to make it easier for shop owners to shop.

The potential for digitizing stalls

The solution for this shop actually solves a very basic issue. Based on the results of research entitled The Future of Southeast Asia's Digital Financial Services, at least 92 million adults in Indonesia have not been touched by banking financial services (unbankable) – making it difficult for them to access transactional digital services directly. Warung has the opportunity to become a medium for financial inclusion, especially through digital services.

Warung is the most outreaching business system – the place where micro-economy across Indonesia revolves. According to 2016 Economic Census data released by BPS, of the 26,4 million units of Micro, Small and Medium Enterprises (UMK), 46,38% fall into the category of "Big and Retail Trade, Repair and Maintenance of Cars and Motorcycles. “ – the stall goes in there. This number is also the largest among other types of businesses in Indonesia.

It is estimated that Indonesia's informal food stall economy currently consists of 168 million people who transact $252 billion annually. In order to move towards an inclusive digital economy, digitalization is very important to overcome the core problems faced by stalls in these small environments.

In interview withDailySocial.id, Co-Founder Ula Nipun Mehra explains his analysis of why his startup is determined to enter this sector. According to him, traditional retail such as warungs is the main pillar of the Indonesian economy. The backbone of the consumption economy, while employing millions of people.

“Traditional retailers are included cost-effective and have in-depth knowledge of the local market. However, this sector is the most vulnerable part of value chain because they usually work individually on a small scale," he said.